SkyMall has filed for Chapter 11 bankruptcy. File this under “what took so long?”
Xhibit Corp, the publicly traded company behind SkyMall LLC and several other subsidiaries, said it’s facing a severe liquidity crisis and would look to sell its assets as a going concern. Shares of Xhibit, which has a market cap of about $8 million, surged 43 percent on the over-the-counter market after the announcement.
SkyMall, once the sole catalog provider for airline passengers, has faced increased competition from e-commerce providers, such as Amazon.com and eBay.com.
The SkyMall business generated revenue of about $33.7 million in 2013, but only $15.8 million for the nine months ended September 28, 2014.
Hmmm, to clarify, SkyMall really viewed Amazon and eBay as being their competition? As opposed to Rubik’s cubes, crossword puzzles, and biting fingernails? 😉
Nobody actually wanted to read SkyMall, but they had a captive audience from the time the cabin door closed to the time electronic devices could be used, and then from the time electronic devices had to be turned off to the time the plane landed. With electronic devices now being allowed in all stages of flight, that’s not the case anymore.
Good riddance to SkyMall, and RIP to the Zombie Gnombie Statue.